Perth’s housing market leads national growth
In June, residential property values throughout Australia rose by 0.7%. Perth led the nation with a robust growth of 2.0%, followed by Adelaide (1.7%) and Brisbane (1.2%), while Melbourne was the only city to record a contraction, falling by 0.2%. (CoreLogic, 2024)
Dwelling prices in Perth have increased over the past quarter by 6.4%, marking a 23.6% rise over the past year; the highest among all cities in Australia (CoreLogic, 2024).
Property listings and days on market remain low
According to REIWA, there were only 3,367 properties listed for sale in the week ending 30 June 2024. This figure is up from the 3,270 recorded four weeks prior but down from the 5,328 in the same week last year.
The average time to sell a house in the Perth market remained at just 8 days in June 2024, 2 days faster than the previous year. However, the average time to sell a unit increased slightly to 11 days compared to the previous month (REIWA, 2024).
The graph below demonstrates the declining trend of available stock in the Perth market.
Source: REIWA and Momentum Wealth Research
Rental prices hold steady
Perth’s median rental dwelling price remained stable at $650 per week in June 2024, which represents an 18.2% increase from 12 months ago. The median rental prices for houses and units also held steady at $650 per week and $600 per week, respectively, for the month of June. (REIWA, 2024)
There was an increase in rental properties coming onto the market in June, with 2,475 properties listed for rent in Perth during the week ending 30 June 2024. This is up from 2,405 recorded four weeks prior and 2,112 recorded during the same period last year. (REIWA, 2024)
The graph below shows the decline in the number of homes available for rent in the Perth market.
Source: REIWA and Momentum Wealth Research
In June 2024, Perth’s vacancy rate remained stable at 0.5%, slightly lower than the 0.7% recorded 12 months prior. Rental vacancies continue to be well below the expected balanced market range of 2.5% and 3.5%. During June 2024, it took a median of 18 days to lease a property, which is 2 days slower compared to May and 12 months ago. (REIWA, 2024)
Mixed trends in housing affordability across Australia
According to the Real Estate Institute of Australia (REIA), housing affordability improved for the first time in 3 years during the March 2024 quarter. The proportion of income required to meet the average loan repayment nationally fell by 1.1% to 46.7%. This improvement is largely attributed to stronger wage growth and a pause in interest rate rises.
While Western Australia remains one of the most affordable states in Australia, alongside the Northern Territory and ACT, housing affordability worsened slightly during the March 2024 quarter. The average family now contributes 37.8% of their income towards mortgage repayments, up from 36.7% in the previous quarter.
New South Wales retains its status as the least affordable state, with homeowners allocating 56.3% of their household income to mortgage repayments. There are some positive signs for affordability within New South Wales, though, as it improved from 58.5% recorded in the previous quarter. (REIA, 2024).
Source: REIA